TRENDS OF MULTIDIMENSIONAL INEQUALITY IN PAKISTAN

Abstract

The devastating dynamics of multidimensional inequality has always been a debatable issue over the history of developing globe. This paper develops an index of multidimensional inequality (MDI) using the same dimensions and weights that has been used by Government of Pakistan over a ten-year period using Pakistan Social and Living-standard Measurement (PSLM) survey data for 2004-05 and 2014-15. The analysis show that along with overall decreased MDI in Pakistan, the direction of change remains different for urban and rural areas. The overall reduction in MDI is larger in urban areas compared to a little deterioration in the rural areas of the country. The analysis also show that MDI decreased in Punjab, Sindh and Khyber Pakhtunkhwa provinces while it deteriorated in Balochistan. An examination of the dimensions show that lack of education contributes more in the level of inequality, followed by access to health services. Education level of the head of household, level of income and family size were found to be strongly associated with factors contributing to the status of a household in terms of its contribution to MDI.